What might tax reform mean to your retirement account?

Both the House and Senate tax reform plans keep 401(k) deferral limits, but they make other retirement-related changes

Jon VoglerTime to read: 3 min

On Nov. 2, House Republicans unveiled their long-awaited tax reform proposal (the Tax Reform and Jobs Act), which calls for substantial tax cuts, offset in part by the elimination or modification of numerous tax incentives. Not included in the bill were rumored “Rothification” changes that would have reduced the tax incentives enjoyed by many retirement savers — forcing some or all new individual retirement account (IRA) and employee 401(k) and 403(b) contributions to be made on an after-tax basis into Roth accounts, rather than on a traditional pre-tax basis. However, several technical changes were made to certain plan and IRA features.

Retirement provisions in the House bill


Could tax reform boost value stocks?

2018 outlook: A drop in the corporate tax rate could help create jobs and grow wages

Time to read: 2 min

As 2017 nears its end, US value stocks are mired in their longest stretch of underperformance versus growth stocks since the Great Depression, held back by low interest rates and easy monetary policy. In my view, the top issue that will help determine whether that trend continues or abates is US tax reform.

In late September, Republicans unveiled their proposal, which addressed the repatriation tax, household taxation and corporate taxation.